Buying Tax Credits May 2026

—formally known as tax credit transferability—allows businesses and certain individuals to purchase federal or state tax credits at a discount to reduce their overall tax liability. Historically a niche activity for large corporations, this market has expanded significantly since the Inflation Reduction Act of 2022 enabled a broader range of "transferable" credits. How Buying Tax Credits Works

As of 2026, the market is primarily driven by clean energy and social programs. Buying Tax Credits - A Guide for Corporate Taxpayers - Crux buying tax credits

Tax credit transfer involves a seller (e.g., a renewable energy developer) who has generated more credits than they can use and a buyer with a large tax bill. Buying Tax Credits - A Guide for Corporate

Buyers typically pay a discounted rate for credits, such as $0.92 for every $1.00 of credit value. For example, a company might buy $1 million in credits for $920,000, creating an immediate $80,000 tax saving. creating an immediate $80